Shiba Inu (SHIB) has managed to maintain its position above the $0.000025 support level as of April 26, following a retest at $0.000029 earlier in the week when the team raised $12 million. Within the weekly timeframe, SHIB price has experienced a 41% increase.
Between April 19 and April 22, the price of Shiba Inu skyrocketed by 53%, reaching a peak of $0.000029 after the team’s $12 million fundraise announcement. This successful start has propelled the world’s largest memecoin project forward.
Despite a 10% retracement towards the $0.000025 support level, SHIB still maintains a 41% weekly gain at the time of writing on April 26. Interestingly, recent trends in the derivatives markets suggest that bullish sentiment remains strong.
Speculative traders have shown great interest in SHIB futures contracts, with $23 million worth of new contracts being mounted. This disproportionate rate of contract accumulation compared to the price trend indicates a belief among traders that SHIB will experience further gains.
Coinglass’ Open Interest metric, which measures the total value of active futures contracts for a specific crypto asset, shows a significant increase in SHIB open interest. Since April 19, open interest has grown by $23 million, reaching a total of $75.1 million on April 26. This 45% growth in open interest outpaces the 41% growth in SHIB price, signaling a bullish sentiment among traders.
When open interest grows faster than price, it suggests increased participation and confidence in the asset’s future price potential. This influx of new positions can lead to higher liquidity and trading activity, providing further support for upward price momentum. Additionally, it may indicate that traders are accumulating long positions or implementing hedging strategies in anticipation of future price appreciation.
Therefore, the $23 million growth in SHIB open interest could be a precursor to another push towards the $0.000030 price milestone in the near future.
Disclaimer: This article provides information and should not be considered financial advice. The author’s opinions expressed in this article do not necessarily reflect those of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.